11-14-301 - Issuance of bonds by governing body -- Computation of indebtedness under constitutional and statutory limitations.
11-14-301. Issuance of bonds by governing body -- Computation of indebtednessunder constitutional and statutory limitations.
(1) If the governing body has declared the bond proposition to have carried and nocontest has been filed, or if a contest has been filed and favorably terminated, the governing bodymay proceed to issue the bonds voted at the election.
(2) It is not necessary that all of the bonds be issued at one time, but bonds approved bythe voters may not be issued more than 10 years after the date of the election.
(3) (a) Bonds approved by the voters may not be issued to an amount that will cause theindebtedness of the local political subdivision to exceed that permitted by the Utah Constitutionor statutes.
(b) In computing the amount of indebtedness that may be incurred pursuant toconstitutional and statutory limitations, the constitutionally or statutorily permitted percentage, asthe case may be, shall be applied to the fair market value, as defined under Section 59-2-102, ofthe taxable property in the local political subdivision, as computed from the last applicableequalized assessment roll before the incurring of the additional indebtedness.
(c) In determining the fair market value of the taxable property in the local politicalsubdivision as provided in this section, the value of all tax equivalent property, as defined inSection 59-3-102, shall be included as a part of the total fair market value of taxable property inthe local political subdivision, as provided in Title 59, Chapter 3, Tax Equivalent Property Act.
(4) Bonds of improvement districts issued in a manner that they are payable solely fromthe revenues to be derived from the operation of the facilities of the district may not be includedas bonded indebtedness for the purposes of the computation.
(5) Where bonds are issued by a city, town, or county payable solely from revenuesderived from the operation of revenue-producing facilities of the city, town, or county, or payablesolely from a special fund into which are deposited excise taxes levied and collected by the city,town, or county, or excise taxes levied by the state and rebated pursuant to law to the city, town,or county, or any combination of those excise taxes, the bonds shall be included as bondedindebtedness of the city, town, or county only to the extent required by the Utah Constitution, andany bonds not so required to be included as bonded indebtedness of the city, town, or countyneed not be authorized at an election, except as otherwise provided by the Utah Constitution, thebonds being hereby expressly excluded from the election requirement of Section 11-14-201.
(6) A bond election is not void when the amount of bonds authorized at the electionexceeded the limitation applicable to the local political subdivision at the time of holding theelection, but the bonds may be issued from time to time in an amount within the applicablelimitation at the time the bonds are issued.
Amended by Chapter 329, 2007 General Session